Stocks & Equities

Richard Branson’s Virgin Orbit to go public via $3.2B SPAC deal

Virgin Orbit is set to go public via a merger with a special purpose acquisitions company (SPAC), the company has confirmed. The deal values the combined enterprise at $3.2 billion, and will provide Virgin Orbit with $483 million in cash at close, including a $100 million PIPE. The combined company will trade under the ticker VORB on the Nasdaq if and when the transaction concludes.

In June, CNBC reported that such a deal was in the works, and it’s been a popular exit option for private space startups in recent months. Rocket Lab’s SPAC merger was just approved, for instance, and it’ll begin trading on Wednesday, and Richard Branson’s other space company, Virgin Galactic, was the first big SPAC deal that ushered in the more.

Delta variant may mute Q3 earnings performance at the Big Six banks

For the past two quarters, Canada’s big banks have crushed earnings expectations and their shares have enjoyed sharp post-earnings rallies. They also began releasing large sums of money previously set aside for loans that could potentially go bad – all of which flowed directly to the bottom line.

The rapid spread of the COVID-19 Delta variant, however, may slow down that trend when the banks report fiscal third-quarter results next week.

“When we exited Canadian bank earnings season in early June,” wrote Bank of Nova Scotia banking analyst Meny Grauman in a recent report, “we thought that by the time Q3 reporting rolled around, COVID would be a fading memory.”…read more.

Companies Going Public in 2021: Visualizing IPO Valuations

Companies Going Public in 2021: Visualizing Valuations
The beginning of the year has been a productive one for global markets, and companies going public in 2021 have benefited.

From much-hyped tech initial public offerings (IPOs) to food and healthcare services, many companies with already large followings have gone public this year. Some were supposed to go public in 2020 but got delayed due to the pandemic, and others saw the opportunity to take advantage of a strong current market.

This graphic measures 47 companies that have gone public just past the first half of 2021 (from January to July)— including IPOs, SPACs, and Direct Listings—as well as their subsequent valuations after listing.

Who’s Gone Public in 2021 So Far?

Historically, companies that wanted to go public employed one main method above others: the initial public offering (IPO).

But companies going public today readily choose from one of three different options, depending on market situations, associated costs, and shareholder preference:…click to read more and to see full infographic.

Is Robinhood The Next Meme Stock To Explode?

Robinhood, the “democratizing” zero-fee trading app that helped create the retail trading frenzy that led to the wild ride with Gamestop and AMC Entertainment stocks, is now it’s own wild ride.

It’s a self-fulfilling prophecy.

Robinhood launched its IPO on July 29th at a price of $38 per share. Since then, it’s been a rollercoaster of volatility.

In its first day of trading, the stock dropped 10%, made some minor recoveries later in the day, and closed at a price of $34.82.

In its first full week of trading however, the stock jumped 57%, to $55.01, well above its initial public offering price of $38.

Since then, there have been major percent increases and decreases each day to the value of the stock. From highs of up 50% to lows of down 28%, share prices have been very volatile day to day.

Speculation abounds as to what is causing all the volatility, but nothing more concrete than “meme” has emerged.

The push is that this is one of the more exciting IPOs of the year with a stock that is single-handedly responsible for a sea-change in trading, opening up a new world to “retail” investors that had until then been the …read more.

Robinhood has the worst debut ever for IPO of its size

Robinhood Markets Inc. wanted to make history with its initial public offering, and now it has — for the wrong reason.

Shares in the broker behind the meme-stock revolution fell 8.4 per cent below the IPO price in the company’s first trading session. That’s the worst debut on record among 51 U.S. firms that raised as much cash as Robinhood or more, according to data compiled by Bloomberg.

It dethroned the 2007 IPO by another brokerage, MF Global Holdings Ltd., as the worst debut among qualifying firms. MF Global ended its first day down 8.2 per cent.

Robinhood opened at the US$38 initial public offering price. For an IPO of Robinhood’s size and larger, that’s the weakest opening trade since Uber Technologies Inc. in May of 2019 among U.S. firms. Uber finished its debut session down 7.6 per cent…read more.